TNAG-1051-FCO40-1301-China-s-economic-relationship-with-Hong-Kong-1982 — Page 109

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CONFIDENTIAL

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Shenzhen-Lo Wu area. The conurbation now encompasses the

former villages of Shenzhen and Lo Wu and extends eastwards

nearly as far as Mau Kam To. The area has been set aside

for commercial development and supporting services and, according to China Economic News (8 June) will become the

main business and banking centre of the SEZ by 1985.

Land

has been levelled, drainage, electricity and mains water

have been installed and roads built.

(d) Shangbu area. This 28 sq. km. area to the west of Shenzhen

is intended for light industry, textiles, electronics

factories and other non-polluting industries. Probably the

largest factory in this area is the Harpers International (Fords) vehicle assembly plant (Annex D: ref. (e)). The

site covers 600,000 sq. ft. and involves an investment of some HK$20 million (US$4 million) under a compensation trade

arrangement. When in full production, the factory should

produce 3,500 vehicles a year. However, during. a recent

visit to the area by the Director of Trade, Industry & Customs,

there was very little activity apparent within the factory

walls and there was no evidence of completed vehicles

awaiting delivery. Further west along the Shenzhen-Shekou road is a site reserved for electronics factories (Annex D: ref. (f)), where an enterprise producing goods under the Sanyo brand-name and a Xinhua (exlusively Chinese owned and run) radio assembly factory are known to exist. Slightly

to the north of these electronics factories, is a 40,000

sq. ft. site comprising a printing works and workers' accommodation run by Goodyear Investment Co. Ltd. of Hong Kong (Annex D : ref. (g)). Goodyear's investment in the factory is thought to be about HK$30 million (US$6 million). Also within the Shangbu area, into the foothills, lies the Drako International Chicken Farm (Annex D: ref. (h)). The area to the south of the Shenzhen-Shekou road is now being

developed as a residential area of workers' apartments.

CONFIDENTIAL:

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